Neocolonialism

Neocolonialism is a term used by post-colonial critics of developed countries' involvement in the developing world. Writings within the theoretical framework of neocolonialism argue that existing or past international economic arrangements created by former colonial powers were or are used to maintain control of their former colonies and dependencies after the colonial independence movements of the post World War II period. The term neocolonialism can combine a critique of current actual colonialism (where some states continue administrating foreign territories and their populations in violation of United Nations resolutions) and a critique of the involvement of modern capitalist businesses in nations which were former colonies. Critics adherent to neocolonialism contend that private, foreign business companies continue to exploit the resources of post-colonial states, and that this economic control inherent to neocolonialism is akin to the classical, European colonialism practiced from the 16th to the 20th centuries.

In broader usage, neocolonialism may simply refer to the involvement of powerful countries in the affairs of less powerful countries; this is especially relevant in modern Latin America. In this sense, neocolonialism implies a form of contemporary, economic imperialism: that powerful nations behave like colonial powers of imperialism, and that this behavior is likened to colonialism in a post-colonial world.

In broader usage the charge of Neocolonialism has been leveled at powerful countries and transnational corporations who involve themselves in the affairs of less powerful countries. In this sense, 'Neo'colonialism implies a form of contemporary, conomic Imperialism: that powerful nations behave 'like colonial powers, and that this behavior is 'likened to' colonialism in a post-colonial world. In lieu of direct military-political control, neocolonialist powers are said to employ financial, bribery/corruption and trade policies to dominate less powerful countries. Those who subscribe to the concept maintain this amounts to a 'de facto' control over less powerful nations ('see Immanuel Wallerstein's World Systems Theory').

Both previous colonizing states and other powerful economic states maintain a continuing presence in the economies of former colonies, especially where it concerns raw materials. Stronger nations are thus charged with interfering in the governance and economics of weaker nations to maintain the flow of such material, at prices and under conditions which unduly benefit developed nations and trans-national corporations.

Multinational corporations

Critics of neocolonialism also argue that investment by multinational corporations enriches few in underdeveloped countries, and causes humanitarian, environmental and ecological devastation to the populations which inhabit the neocolonies. This, it is argued, results in unsustainable development and perpetual underdevelopment; a dependency which cultivates those countries as reservoirs of cheap labor and raw materials, while restricting their access to advanced production techniques to develop their own economies. In some countries, privatization of national resources, while initially leading to immediate large scale influx of investment capital, is often followed by dramatic increases in the rate of unemployment, poverty, and a decline in per-capita income. This is particularly true in the West African nations of Guinea-Bissau, Senegal, and Mauritania where fishing has historically been central to the local economy. Beginning in 1979, the European Union began brokering fishing rights contracts off the coast of West Africa. This continues to this day. Commercial unsustainable over-fishing from foreign corporations have played a significant role in the large-scale unemployment and migration of people across the region. This stands in direct opposition to United Nations Treaty on the Seas which recognizes the importance of fishing to local communities and insists that government fishing agreements with foreign companies should be targeted at surplus stocks only.

International Financial Institutions

Some portray the choice to grant or to refuse granting loans (particularly those financing otherwise unpayable Third World debt), especially by international financial institutions such as the International Monetary Fund (IMF), and the World Bank (WB), as a decisive form of control. They argue that in order to qualify for these loans, and other forms of economic aid, weaker nations are forced to take certain steps favorable to the financial interests of the IMF and World Bank but detrimental to their own economies. These structural adjustments have the effect of increasing rather than alleviating poverty within the nation. Some have pointed out that neocolonialism allows certain cartels of states, such as the World Bank, to control and exploit usually lesser developed countries (LDCs) by fostering debt. In effect, third world governments give concessions and monopolies to foreign corporations in return for consolidation of power and monetary bribes. In most cases, much of the money loaned to these LDCs is returned to the favored foreign corporations. Thus, foreign loans are in effect subsidies to corporations of the loaning states. This collusion is sometimes referred to as the corporatocracy. Organizations accused of participating in neo-imperialism include the World Bank, World Trade Organization and Group of Eight, and the World Economic Forum. Various "first world" states, notably the United States, are said to be involved, as described in 'Confessions of an Economic Hit Man' by John Perkins.